Canadian banks join forces on tokenised deposits

Canada's largest banks are collaborating on a system for tokenized Canadian dollar deposits. The participating banks include Bank of Montreal, CIBC, National Bank of Canada, Royal Bank of Canada, Scotiabank, and TD Bank Group.

This initiative aims to enable digital representations of bank deposits to be transferred between financial institutions, potentially leading to faster and more efficient programmable payments. According to Finextra, the goal is to deliver faster, more efficient programmable payments.

The project is set to begin with a focus on moving tokenized deposits between Canadian financial institutions, with the possibility of connecting with other digital asset systems in the future. The Office of the Superintendent of Financial Institutions (OSFI) recently clarified that tokenized deposits are not legally distinct from traditional deposits, and are considered a liability of the bank, as reported by Cointelegraph.

Brief written by urgent.news from Finextra, Cointelegraph — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.